AGO (ASX) AGO option's discussion

Originally posted by prezillogic ↑

If AGO consolidates its shares at the wrong time it will be the ruin of AGO.
They need to be completly out of debit before even thinking about it.
Why the heck did you think they issued all these shares in the first place.
Why the heck do you think AGO nearly went bankrupt.
Why the heck do you think AGO is a penny stock today
from a billion dollar company.
Because the are a high cost producer of iron ore at the mercy of the iron ore price.
No they are not a different company now as the costs are still to high.
Are they heading in the right direction yes they are.
Will the iron ore price hold above $80 per ton for the next 12 months no one knows I hope so.
Understand this AGO is not out of the woods yet .
When AGO becomes a low cost producer and proves to shareholders it is doing so effectively.
Imagine consolidating these shares iron ore goes down then were right back were we started from.
THEN ALL OF A SUDDEN ALL OVER AGAIN THEY ISSUE BILLONS OF SHARES TO GET THEM OUT OF TROUBLE AGAIN .
The only way AGO is to succeed is by reducing its cost so they are not at the mercy of the iron ore price.
Why is this so hard to understand.

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If that post is directed at me, I said post June need consolidation. I would be expecting they would be out of debt by end 2017 by the way. If they are not out of debt by then they shouldn't be consolidating IMO. Now the key to my post before yours was could they fund CD and any future mine from current cash flow without a need for further debt - if answer is no then they need to try to get the options converted (either both O and A, or just A) or work out what type of CR they need if options are not converted post June. You consolidate after you have no debt IMO for AGO given its past history, and that means after they pay of CD and the mine expansions.

Agree that AGO must reduce cost. I read Gina's novel way for reducing costs for Roy Hill, so AGO also needs to think outside the box so that it is not impacted as significantly next time around when iron ore prices drop below $60 per tonne.
http://www.smh.com.au/business/mini...t-costs-at-roy-hill-mine-20170329-gv9gw5.html

All IMO